Back in October, OpenAI’s Sora 2 AI video generator and fake social media app was described as “the end of Hollywood.” These have quickly become popular because they allow people to appear in short, realistic-looking videos using just reference images and simple text prompts.
Five months later, the company had to close its doors. Apparently, one of the world’s largest AI companies realized that generating AI video requires a lot of computing power and doesn’t yield much profit.
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Sora’s existence was hit and miss from the beginning. Initially, the app had few controls. This ensured its virality as people began using it to create their own “cameos” using copyrighted characters, along with Nazi SpongeBob and “Epstein’s Island” children’s toy ads, Martin Luther King’s racist videos, and more.
The film association sued for copyright infringement. OpenAI CEO Sam Altman played dumb, claiming he was surprised people “don’t want Cameo actors to say things that are offensive or that we find deeply problematic,” but the company has switched to an opt-in policy for protected IP.
Just two months later, Disney found out it has no problem with people creating AI slop using their characters, as long as they can stream that slop on Disney+. Agreed to invest $1 billion in OpenAI and enable the company to use over 200 characters in Sora.
For some, the end of Sora is a sign that, if not bursting, the AI bubble is at least drifting toward Earth. Maybe not.
“As our focus and demand for computing increases, the Sora research team remains focused on world simulation research to advance robotics that help people solve real-world physical tasks,” an OpenAI spokesperson said in a statement reported by CNN.
Some have suggested that OpenAI viewed Sora as just an experiment. That seems unlikely when he signed such a high-profile deal with Disney just three months ago. There appeared to be pressure from investors and management to streamline the company’s focus, reduce reputational risk and prepare for an IPO.
Sora was a trivial responsibility for a company aiming to develop artificial general intelligence (AGI). This has become even clearer as the reputations of AI companies have come under the microscope during the recent controversy surrounding the use of AI in the military at the Department of Defense.
Sarah Friar, Chief Financial Officer of OpenAI, said: CNBC He said the company must be “ready to become a publicly traded company.” That means focusing on more serious initiatives, such as combining ChatGPT and AI coding agent Codex to create an integrated AI super assistant for consumers.
What does it mean for the future of AI video? Sora is one of the simplest and most advanced generators for everyday users. Its retirement removes the primary source of AI-generated content on social media. Many creators say they’ve built their audiences around the clips Sora generates. They now face uncertainty about preserving their materials and what tools to use in their place.
However, sadly for those tired of AI slop, this “genre” isn’t likely to go anywhere. There are competitors that could benefit from Sora’s exit, including Runway, Pika Labs, Kuaishou (Kling AI), and Stability AI.
That said, OpenAI’s decision highlights the fact that making consumer-focused AI video generation profitable is difficult. The future may be less about memes and more about in-house enterprise solutions for studios.
As for Disney, it’s been a difficult first week for new CEO Josh D’Amaro. Fortnite developer Epic Games, which invested $1.5 million as part of its plan to add game-like features to Disney+, announced it would lay off 1,000 people just days after announcing the release of Star Wars: Fortnite Islands. Meanwhile, people are mocking the new Moana trailer.
“We will continue to work with our AI platforms to find new ways to meet our fans where they are, while responsibly embracing new technologies that respect intellectual property and creator rights,” Disney said in a statement.
Again, that could mean working with a company like Runway, which was developing an in-house AI model for Lionsgate. Or even Google, to which Disney reportedly sent a cease-and-desist letter after signing a deal with OpenAI, could mean working with such a company.
